Cardinal Health (CAH) Releases Quarterly Earnings Results

Cardinal Health (NYSE:CAH) released its quarterly earnings results on Thursday. The company reported $1.31 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $1.14 by $0.17, Morningstar.com reports. Cardinal Health had a net margin of 0.84% and a return on equity of 25.24%. The company had revenue of $35.19 billion for the quarter, compared to analysts’ expectations of $34.63 billion. During the same period last year, the company earned $1.34 EPS. The firm’s revenue for the quarter was up 6.1% compared to the same quarter last year. Cardinal Health updated its FY18 guidance to $5.25-$5.50 EPS.

Cardinal Health (NYSE CAH) opened at $66.56 on Friday. Cardinal Health has a 1-year low of $54.66 and a 1-year high of $84.88. The company has a debt-to-equity ratio of 1.35, a current ratio of 1.06 and a quick ratio of 0.52. The company has a market cap of $20,493.28, a P/E ratio of 19.37, a P/E/G ratio of 1.48 and a beta of 0.96.

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The business also recently disclosed a quarterly dividend, which will be paid on Sunday, April 15th. Stockholders of record on Monday, April 2nd will be issued a dividend of $0.4624 per share. The ex-dividend date of this dividend is Thursday, March 29th. This represents a $1.85 annualized dividend and a dividend yield of 2.78%. Cardinal Health’s payout ratio is currently 53.78%.

Several equities research analysts have issued reports on CAH shares. Morgan Stanley cut shares of Cardinal Health from an “equal weight” rating to an “underweight” rating in a research note on Monday, November 20th. Deutsche Bank began coverage on shares of Cardinal Health in a report on Monday, December 4th. They set a “hold” rating and a $64.00 price objective on the stock. Argus lowered shares of Cardinal Health from a “buy” rating to a “hold” rating in a report on Wednesday, November 15th. Zacks Investment Research upgraded shares of Cardinal Health from a “sell” rating to a “hold” rating in a report on Wednesday, November 8th. Finally, Needham & Company LLC reiterated a “hold” rating on shares of Cardinal Health in a report on Thursday, October 12th. Two analysts have rated the stock with a sell rating, thirteen have assigned a hold rating and five have given a buy rating to the company. The company presently has an average rating of “Hold” and an average target price of $74.61.

In related news, CEO Michael C. Kaufmann sold 18,586 shares of the firm’s stock in a transaction that occurred on Monday, January 22nd. The shares were sold at an average price of $73.90, for a total value of $1,373,505.40. Following the transaction, the chief executive officer now owns 211,849 shares in the company, valued at $15,655,641.10. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Company insiders own 0.97% of the company’s stock.

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Farmers National Bank raised its holdings in Cardinal Health by 1.9% in the second quarter. Farmers National Bank now owns 4,902 shares of the company’s stock valued at $382,000 after buying an additional 90 shares during the period. Advisory Services Network LLC raised its holdings in Cardinal Health by 18.4% in the second quarter. Advisory Services Network LLC now owns 1,739 shares of the company’s stock valued at $136,000 after buying an additional 270 shares during the period. Ameritas Investment Partners Inc. raised its holdings in Cardinal Health by 2.3% in the second quarter. Ameritas Investment Partners Inc. now owns 15,232 shares of the company’s stock valued at $1,185,000 after buying an additional 345 shares during the period. Colony Group LLC raised its holdings in Cardinal Health by 2.0% in the second quarter. Colony Group LLC now owns 19,571 shares of the company’s stock valued at $1,525,000 after buying an additional 388 shares during the period. Finally, Scotia Capital Inc. raised its holdings in Cardinal Health by 12.5% in the second quarter. Scotia Capital Inc. now owns 4,108 shares of the company’s stock valued at $320,000 after buying an additional 456 shares during the period. Hedge funds and other institutional investors own 88.00% of the company’s stock.

Cardinal Health declared that its board has approved a stock buyback plan on Thursday, February 8th that allows the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization allows the company to buy shares of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s board believes its stock is undervalued.

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Cardinal Health Company Profile

Cardinal Health, Inc is a healthcare services and products company. The Company operates through two segments: Pharmaceutical and Medical. The Pharmaceutical segment distributes branded and generic pharmaceutical, specialty pharmaceutical, over-the-counter healthcare and consumer products. This segment also operates nuclear pharmacies and cyclotron facilities; provides pharmacy management services to hospitals, as well as medication therapy management and patient outcomes services to hospitals, other healthcare providers and payers, and provides services to healthcare companies.